Lagos Startups Raise $820m In Early-stage Funding

Startups in Lagos raised around $820 million in early-stage funding which was the highest in the Sub-Saharan startup ecosystem, a report has revealed.

The report by policy and advisory research firm, Startup Genome, also revealed that, the Lagos startup ecosystem calculated using the value of exits and startup valuation from the second quarter of 2020 to 2022 was valued at $8.4 billion, thereby, placing the state as regional leader in the Sub-Saharan startup ecosystem in terms of the value of the ecosystem and the amount raised in funding.  

The report disclosed that Lagos was closely followed by Nairobi and Cape Town with total startups valuation of $7 billion and $3 billion respectively. The report also revealed that Lagos held its place in the range of 51 and 60 in the global emerging startup ecosystem ranking.

In terms of the amount raised in funding, the report stated, OPay’s $400 million Series C in August 2021 was the region’s biggest deal, while Flutterwave’s $250 million Series D in February 2022 saw its valuation increase to over $3 billion.

Findings from the report also show that Venture Capital (VC) funding in the region declined by six per cent from 2021 to 2022. Fintech was the region’s top-performing technology sector comprising 41 per cent of total startup deals between 2018 and 2022. Nairobi was reported to be the region’s biggest fintech hub.  

According to the report, 88 per cent of tech startups in Nigeria are in Lagos amounting to over 400 startups, adding that the Lagos tech ecosystem is dominated by fintechs which constitute 49 per cent of tech companies in the city.